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Poison Token (POI$ON)
The Poison Token (POI$ON) is Poison Protocol's multichain governance utility and rewards token. It must be staked to vote on active polls and will be required as a deposit for making new governance polls.
POI$ON is provided as an incentive for users to farm rewards by staking LP tokens - minted by providing liquidity for POI$ON and Potions. Yield is paid to the users from POI$ON that are newly minted in the MasterCastle through annual inflation, which gradually increases the total supply of POI$ON until the end of 4th year.
Because of the importance of POI$ON Token for Poison.Finance ecosystem it is imperative to ensure a certain degree of decentralization. As a consequence of that there will not be any team tokens issued, after the Private sale ends developers will not have any special control over token minting or distribution.
This section discusses staking rewards for POI$ON tokens, which come from trading fees. Staking LP tokens also generates POI$ON rewards, which come directly from new POI$ON tokens created every block.
POI$ON Token stakers receive USDC token rewards every block, which are generated from protocol fees from Vault withdrawals. The protocol fees are collected from Vault collateral and are sold for USDC. The USDC tokens are then distributed as rewards to POI$ON stakers in proportion to the percentage of total stake.
Whenever a new governance poll is created, an initial deposit of POI$ON tokens must be paid. If the poll does not reach voting quorum, this deposit is distributed to all POI$ON stakers proportionately.
Last modified 3mo ago